The study reveals that 67% of organisations report an increase in cyber incidents across the past year compared to the previous one and underscores the growing challenges for organisations in balancing technological advancement with robust cyber risk management to protect both their operations and reputations.
Key findings from the Cyber Readiness Report 2024 include:
Customer Loss and Attraction Difficulties: Nearly half of the affected businesses (47%) reported difficulties attracting new customers following a cyber attack, more than double the rate reported the previous year (20%). Additionally, 43% of companies lost existing customers (up from 21%), and 38% suffered negative publicity (up from 25%).
Reputational Damage and Ransom Payments: Concerns over reputation are prompting businesses to make ransomware payments. The main motivations for paying ransom included protecting customer data, safeguarding reputation, and recovering data when no back-ups were available. However, paying a ransom didn’t guarantee full recovery, as only 18% of businesses were able to fully restore their data.
Adoption of New Technologies and Increased Vulnerabilities: The rapid integration of new technologies like Generative AI (GenAI) is introducing new vulnerabilities. While 70% of surveyed businesses have adopted GenAI in their operations, over half (56%) believe it increases their cyber security risks. Alarmingly, 34% of businesses feel unprepared due to a lack of expertise in managing these emerging technology risks.
Innovation and Cyber Security: A quarter of businesses (26%) recognize the crucial link between cyber risk management and supporting innovation. As technology advances, businesses are urged to see cyber security and innovation as complementary, not conflicting, forces.
Eddie Lamb, Chief Information and Security Officer at Hiscox, emphasised the importance of protecting not just a business’s physical assets, but also its reputation, stating, “Businesses invest years and significant resources to build their reputations, only to see them compromised within minutes during a cyber attack. Continuous cyber education and awareness across all levels of an organisation are essential to maintaining security.”
You can download the report here
